At 22:53 17/08/2012, Natalia wrote: snip--->
The New York Times reports there's more money in the banks of the Cayman Islands than in all the banks of New York City combined. What's it all doing there? Avoiding taxes for one. But perhaps even more seriously, offshore banking starves the world's economy of cash at a time when it could really use a few extra bucks.
(KH) There's hardly any money in its true sense (a consumer commodity) in the Cayman Islands at all. There are only electronic representations, of which every last digit has a physical counterpart sitting on the ground somewhere in the world or flying in the air or floating on the sea. Every last square inch of these items that are visible to the public (and owe their value to the public) is taxable.
Offshore banking itself doesn't starve anybody. What starves us are onshore banks which are given special privileges by governments and which ought, when necessary, to be forced into bankrupt like every other business. Instead, they are propped up by the taxpayer by quantitative easing and other dodgy devices. If they weren't propped up, then every single unproductive, overvalued collateral would quickly find its true market price and productiveness.
Keith Keith Hudson, Saltford, England http://allisstatus.wordpress.com
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